India to be worst hit if global trade falls, says commerce minister Suresh Prabhu
India will be the worst sufferer if international trade declines, Union commerce and industry minister Suresh Prabhu said on Tuesday, as the US ratchets up tariff war and embarks on protectionism.
“India is the worst sufferer if the world trade does not grow, because we have a huge stake, our share in global trade is increasing,” Prabhu said at an industry-body event in New Delhi.
“We are at a stage where more global growth will come from more production within the country,” he said.
India has the potential to become a $10-trillion economy before 2035, the Minister said at the 98th Annual Session of The Associated Chambers of Commerce and Industry of India (Assocham).
“I have set up some top thinkers to navigate India out of these new emerging trends and how we become winners despite these challenges,” he said.
He stressed that India’s integration with international trade was critical if it were to grow at a faster rate.
The government is working on improving business atmosphere in Asia’s third-largest economy.
“We have to ensure that India continues to be on the forefront of growth, not only to help our people but also to contribute to global growth. So, one country growing also helps other countries as a co-beneficiary,” he said.
Prabhu, who is also the Union Civil Aviation Minister, said the government was preparing a roadmap to promote manufacturing of aeroplanes in India.
India would require at least 1,000 aeroplanes, as the aviation sector expands. The government is readying a plan to manufacture aircraft locally, he added.
Further, the government’s twin plan of promoting indigenous manufacturing of aeroplanes and construction of 100 airports in 15 years at an estimated cost of $65 billion would drive the aviation sector’s growth, he said.
Speaking at the same event, Vice President M. Venkaiah Naidu said that there was a need to promote corporate ethics.
“Ethical behaviour has to be promoted by individuals as well as organisations by adopting zero-tolerance towards corruption, bribery and frauds,” Naidu said.
Naidu said India must capture the demographic dividend by imparting appropriate education, skills and fostering entrepreneurship, so that its youth become job creators instead of job seekers.